MANILA, Philippines — With oil companies rushing to comply with the government’s fuel marking program, the Bureau of Customs (BOC) said it recorded an increase in the reported volume of fuel products imported into the country, as well as revenue collections from oil imports last year.
In a text message, Customs Assistant Commissioner Vincent Philip Maronilla said the bureau’s revenue collection from oil imports jumped by 59.34 percent to P145 billion last year from P91 billion in 2018.
He said the volume of imported fuel imports in 2019 likewise rose by 20.83 percent to 14.5 billion liters from 12 billion liters in the previous year.
During a press briefing following the BOC’s anniversary celebration last Friday, Maronilla said the agency saw the improvement in reporting and tax payments due to the implementation of the fuel marking program.
“That alone, we’re seeing because of the fear factor, because last year we already announced that the fuel marking program will be implemented,” he said.
Finance Undersecretary Antonette Tionko said the increase happened even before the program was fully implemented.
“Even before it was fully implemented, I think the fear factor already resulted in better reporting of volumes,” Tionko said. “Even without the full implementation we saw an increase already, especially in Subic, Clark where the increase was very significant.”
Finance Secretary Carlos Dominguez said this could be a manifestation that some oil importers were not fully compliant with customs and tax laws before the program.
“That’s why we put it (fuel marking) there, because we suspected that some people were not fully disclosing or fully paying the taxes on the imports,” he said.
Tionko said the government would conduct audits on the companies which reported a significant increase in their volumes and tax payments.
The fuel marking program is part of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Under the program, petroleum products for domestic consumption with proof of payment of taxes will be injected by markers.